Buying a property in the USA

USA Mortgages

Fortunately, the US mortgage industry is reasonably advanced offering a range of different options for foreign purchasers. However, any mortgage obtained in the USA will be in US dollars, which can cause budgeting difficulties for those whose income is in sterling or some other currency.

Purchasing Process

Get a Free Quote Guide to Buying Property in the USA
Unlike in many European countries, the process of purchasing property in the USA is very different from the process in the UK. It is essential that any potential foreign purchaser understands these differences or is at least aware of the differences, before embarking on their property investment.

The Realtor
As with the UK, a seller will appoint a realtor or estate agent to market their property. However, their roles are very different. When a purchaser sees a potential property that they like in the US, they do not contact the realtor that is named as part of the advert or on the board outside the property. This is because the realtor in the US acts entirely for the seller and is under no obligation to disclose any information to a potential buyer, no matter how fundamental.

An alternative that is commonly used (and is preferable in the US) is the option of hiring your own realtor to locate a property for you. This way, you will have an experienced professional acting in your best interests. Any selling commission will also be split between the realtors, resulting in a less ”„pushy”¦ approach from the vendor”¦s agent.

Speed of Purchase
The process of purchasing a property in the USA is often a lot quicker than in the UK. With a pre-owned house, it is actually possible to complete the entire process in as little as 30 days and rarely in more than 60 days. This is, of course, an important factor to bear in mind when putting finance in place.

Just the One Contract
Unlike in the UK, there is only one contract that governs the sale and purchase of property in the USA. When an offer is accepted, a contract is drawn up. This contract states all the terms and conditions that will have to be met before the contract becomes legally binding. As soon as all of these conditions are met, the contract becomes binding and the property transfers.

In essence, this is very similar to the exchange and completion stages that we are used to in the UK. However, it does mean that there is little or no chance of making alterations to the terms and conditions, once the initial contract has been agreed. Therefore, it is important that you carry out all your necessary due diligence before the offer is finalised, as changing your mind later could prove very costly.

Summary
Bullet Point the property purchasing process in the US is a lot quicker and more straightforward than in the UK;
Bullet Point it is common practice to employ a realtor to assist with finding of property and, arguably, this approach is essential to ensure that your interests are adequately protected;
Bullet Point there is only one contract in the USA, so getting the terms and conditions correct from the outset is absolutely vital.

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Typical Interest Payments

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2.89%

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2.89%

Discounted Rate

2.99%

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2.99%

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3%

 

 

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